Prepared by Humayun Khalid

Prepared by Humayun Khalid

Welcome
To KFC
PRESENTATION
• Group Members:
Humayun Khalid Qurashi Muhammad Usman Zafar
Roll #. 04-R Roll #. 30-R
B.Com(Hons.) 5th Semester
B.Com(Hons.) 5th Semester
Muhammad Tayyab Muhammad Saddique

Roll #. 03-R Roll #. 47-R
B.Com(Hons.) 5th Semester B.Com(Hons.) 5th Semester

KFC
• History
• One man operation
• Starts in 1930 by Harland Sanders the founder of KFC
• Named as the dining area "Sanders Court & Cafe."
• In 1939 "Sanders Court & Café” was rebuilt named as
KFC.
• In 1960, 190 KFC franchisees and 400 franchise units in
the U.S. and Canada.
• Cupola
• Cupola holds the master franchise rights to operate KFC
in Pakistan since1999.

KFC in Pakistan
• 63 outlets working in Pakistan

• North Region including Lahore, Rawalpindi and
Islamabad (Punjab).
• South Region including Karachi and Hyderabad
(interior Sindh).

Departments of KFC
• Marketing Department
• Finance Department
• Operation Department
• HRM Department
• Quality Control Department

Marketing Department
• All Planning tools for marketing
• Under Marketing Manager
• Use of 4 P’s (Product, Price, Place,
Promotion) and Extended P’s (Physical
Evidence, People and Process)
• Basic purpose of the marketing
department is to advertise its products in
the market and keep eye on the
competitors that what they are doing.

Finance Department
• Provides close support the

business manager on the
financial implication of business
strategies.
• All final accounts of business
transactions.
• Finance Department analysis the
business results and prepares the
monthly and quarterly review of
business operations.

Operation Department
Under Operation Manager.

Following operations and functions.
• Cooking
• Cleanliness
• Administration of restaurant.
• Complaint
• Handling of the customers
• Daily order to procurement Department
• Day to day demand forecasting
• Daily lectures to crew people
• Trained the employees

HRM Department
• Under HR Manager
• To provide highly qualified and competent
employees to organization.
• Reviewing application form
• Interviewing applicants
• Inducting new employees
• Appraising employees performance
• Make a decision about the employees
training
• Provide a career advice to subordinates

Quality Control Department
• Under Quality Manager

• Monitoring the quality
weight, strength, consistency, color, taste
, reliability, finish.
• Differentiate the organization from the
competitors
• No compromise on quality standards

KFC Management Functions
KFC management is following the “POLCA”
 P = Planning
 O = Organizing
 L = Leading
 C = Controlling
 A = Assurance

Planning
• First pillar
• Strategic Plans
Increase its market worth value of the market
and its market share.
• Operational Plans
Include launching of a new product to change or
innovate its product line for the customers.

CHAMPS
• A philosophy of Management
• Abbreviation of
– C:Cleanliness
– H:Hospitality
– A:Accuracy
– M:Maintenance
– P:Product Quality
– S:Speed of Serve

Planning objectives
To expend our organization in all over the Pakistan.

To create and build superior quality for our
customers.
To follow Marketing Mix Strategies.
To Generate Superior financial return for KFC and
KFC’s employees.

Menu Plans
• KFC offers different types of products
 Mighty Zinger
 Zinger Burger
 Chicken burger
 Chicken Mania
 ETC…

Marketing Mix Plans
Four P’s of Marketing Mix

Product Customers
Product
Price
comes again on
batter service
Place
Promotion Promotion Marketing
Mix Price
Place

Supply Chain Management Planning
• Includes on the full process related with the supply of raw material
includes on the chicken, spices and packing material.
• To increase operation.
Objectives
– To increase the level of outsourcing.
– Increase transportation cost.
– Competitive pressure.
– Increase globalization.
– Supplier.
– Manufacturing storage.
– Distributers
– Retailers.
– Customers.

Organizing
• Second pillar
• Concerns with Organizational
structure, segmentation and targeting of
customers
• Organization structure differs on operational
level and cooperative level. The difference is
due to working activities.
• The operational level management is
concerned with the restaurant business and
management and the cooperate level
management is concerned with the business
activities.
THE KFC MANAGEMENT HIERARCHY CHART
(OPERATIONAL LEVEL)
Area Manager
Territory Manager
Restaurant manager
Assistant Manager
Trainee Manager
Shift Supervisor/Customer Relation Officer
All Stars
Two Stars
Star Staff
Customer Service Team Member Food Service Team Member
Trainee Team Member

THE KFC MANAGEMENT HIERARCHY CHART
(COOPERATE LEVEL IN NORTH REGION)
CEO
Head of North
Associate Regional Manager
Finance Administration Human Resource Operation Brand Audit New Concept
Area Manager
Territory Manager Territory Manager Territory Manager Territory Manager

Factors Effecting Organizing
The Internal Environment
This environment includes the factors that are close to the company and are
controllable by the organization.
 Company
 Suppliers
 Customers
 Competitors
 Marketing Intermediaries
The External Environment
This environment includes on those factors which are not controlled by the
organization.
 Demographic Factors
 Natural Factors
 Technological Factors
 Political Factors
 Cultural Factors

Segmentation
• Geographic segmentation
Based on nations, states, regions, countries, cities or
neighborhood.
• Demographic segmentation
Based on an age, gender, family size, income, education,
occupation, religion, race and nationality.
• Psychographic
Based on buying power level of the customers
• Behavioral
Based on occasions, benefits, User Status, Readiness Status, Attitude
towards Product

Targeting
KFC is targeting upper class. Target market depends
upon size and growth rate of population, company
resources and structural attractiveness of market
segment.
KFC target the Asia and east side because they
observe that they people are like the chicken
products, so they enter in the market due to the
demand of their chicken products.
Target heavily on the youngsters as compared to the
middle & old age.
Leading
• Third pillar
• Related with staff behavior
towards employees, feedback by
the employees to managers and
other top level offices and
customers issues.
• HR manager are responsible for
the all related issues of employees
and customers

Cont.
• Performance of Management
– A process of ensuring employees performance.
– Consists on three phases:
• Setting expectations for employee performance
• Maintaining a dialogue between supervisor and employee to
keep performance on track,
• Measuring actual performance relative to performance
expectations.

Purpose of the performance
management system
• Work performed by employees is according to
KFC’s goals.
• Employees have clear understanding with
expectations.
• Award and bonus salary for ensuring performance
• Opportunities for employee development are
identified.
• Employee performance that does not meet
expectations is addressed.

Performance Cont.
• Two Methods of evaluating the performance

management system.
360 degree feedback
My Growth Body

360 degree feedback System
• 360 Degree Feedback is a system or process in which
employees receive confidential, anonymous feedback
from the people who work around them. This
typically includes the employee's manager, peers, and
direct reports.
• Criteria
– Form of questions with rating scale
– Questions about staff behavior towards employees

360 degree feedback System Cont.
• 360 Feedback as a Development Tool to help

employees recognize strengths and weaknesses and
become more effective when done properly
• 360 Feedback as a Performance Appraisal Tool to
measure employee performance these things are most
appropriately addressed by an employee and his/her
manager as part of an annual review and performance
appraisal process.

360 Cont.
Measures
• 360 feedback measures behaviors and
competencies.
• 360 assessments provide feedback on how others
perceive an employee.
• 360 feedback system addresses skills such as
listening, planning, and goal-setting.
• A 360 evaluation focuses on subjective areas such
as teamwork, character, and leadership
effectiveness.

My Growth Body
• This scale was introduced by the HR

department of KFC in 2000-01.
• Used to measure the performance of their
employee.
• Rank their employee as a good performer or a
bad performer.

How Goals and Objectives are linked with
Performance Management?
• Example:
• Three employees having target 6 million..
• Two achieve 10 million and one achieve 6
million.
• The first two employees are best performance
management skill.
• Includes on self assessment, employees
behavior towards suppliers and customers.
Appraisal system
• Designed to serve the company's and

employee's interests.
• Used to check the ability of Employees and to
ensure that where they are standing.
• As KFC is using 360 degree feedback system.
A circle around the employees.

Reward System
• Employees are motivated.
• KFC also reward their employees in terms of
promotion, incentive, payoff free meals depending on
the level of the employee and how much they
perform their job well.
• Bounces are given to the employees on the basis of
"My growth body" points. If the person has 5 points
he or she can get benefits in term of financial
bonuses.

Controlling
• Forth pillar.
• Related with the controlling the task and
its evaluation that how a manager
control all inventory management, all
employees activities, assign tasks to
employees and evaluate them with
desired goals and objectives.

HR manager control all activities into
following ways
• Feed forward control
• Feedback control
• Concurrent control
• External control
• Employee discipline system
• Financial control
• Purchasing control
• Inventory control
• Statistical control

Feed forward control
• Feed forward controlling is done by the
territory managers.
• Store monitoring and visits to factory to check
its supplies and controlling.
• Done before the finishing the Products.

Feedback Control
• Done by the supervisor of the branch or the
assistant manager.
• Through comment cards, general interviews
of employees about KFC management
behavior and other related issues.

Concurrent control
• Done by the Unit Business Manager
• Done for the assurance of food quality by
monitoring kitchen workers with number of
visits during a day.
• To reduce wastages, and for superior quality
products.

External control
• Yum brand representatives visit KFC

restaurants.
• For standards and quality check up.
• No relaxation is given to Manager on any flaw.

Employee discipline system
• Disciplines are maintained in KFC as this is

their core strategy.
• employment discipline is maintained by
managers and are followed CHAMPS.

Financial control
• Department that sees all the financial

activities.
• UBM has to report all the financial activities
required to be done or done to the finance
department directly.

Purchasing Control
• Purchasing depends on the restaurant
branches:
– In house purchasing
– Ware house purchasing
– Direct purchasing
– Indirect purchasing

Inventory control
• Inventory is done several times a week one

final time a month and at the end of the year.
• Inventory controls are looked after by UBM
and AUBM.

Statistical control
• Control of the branch is taken care by the

UBM and all these statistical data are given to
the financial department at the end of the
day, week, or month.

SWOT ANALYSIS
Strengths Weaknesses
KFC
Opportunities Threats
Strengths
• Brand Equity.
• KFC secret recipe of 11 herbs species.
• Strong Market Share (over 50%)
• Strong Franchise and License Fee revenues for cash flow.
• Oldest and finest in Business
• Loyal customers
• Faces numerous advantages of being a Multinational Organization e.g.
economies of scale, government incentives etc and its good will in entire
world.
• KFC has Competitive advantage in fast food industry because of its quality
and variety of products of chicken.
• Employees are its strength who stands strong with its organization.
• Product is their strength customers come here for product ignoring the
prices.
• Hospitality standards are strength; standards are very high they don’t bear
ignorance regarding product.
• They don’t do much advertisement as awareness is there & they don’t find
a need for advertisement.

Weaknesses
• Presence of Multinational competitors in the
market e.g. McDonalds.
• Compressed hierarchy.
• More work from same people if worker is not
trained for that job.
• Over confidence on own product.
• Lack of knowledge about their customers.
• Lack of relationship buildings with employees.
• Lack of focus on R&D.
• Question of over franchising leads to loss of
control and quality.
Opportunities
• Cheap and easy availability of labor

• Increase consumption of fast food has increased the
market size.
• “All under one roof”
• Loyal customers
• New Leadership, Domestic markets and Customer
focus

Threats
• Rated 83 out of 100 in term of competitiveness.
• High political instability.
• Animal diseases like bird flu.
• Compressed hierarchy can collapse the whole system
of the management efficiency.
• Increasing inflation rates directly affects menu rates.
• 85% annual employee turnover for fast –food market.

Suggestions
• KFC should focus on the competitor’s product.
• KFC should organize its management hierarchy simple
as for every employee and customer.
• KFC should focus on the eligibility of the employees.
• KFC should focus on the market surveys for the
knowledge of customers.
• KFC should facilitate its employees by giving
relaxation and bonuses.
• KFC should focus on its Research and Development
Department.

Comparison KFC and McDonald
KFC McDonald’s
Provide Chicken Spicy Products. Provide Chicken and French Fries.
Arabian Rice and Zinger Burger. Big Mac.
Free Delivery. Free Delivery.
Chicken is eaten by every community. Beef is banned is some community.
Local Staff, highly qualified because local staff It’s staff consists of simple graduates and give
can deal better with customer. them training.
KFC uses Top to Bottom and Bottom to Top Mc. Donald’s uses Top to Bottom approach to
approach to Management. Management.
KFC is co-branding with walls. No such cases.
KFC use feedback system to ensure employees No such system is used.

performance.

Questions and
Answers.

Thank You!

So it’s the time to
decide which one you
would choose!!!
OR

ALLAH HAFIZ

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